A choice experiment study of user preferences for levels of water service

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Discrete choice experimentation is one form of choice modelling. It utilises a stated preference survey technique to gather data for modelling choice. The aims of the study were to demonstrate that discrete choice experiment analysis and the survey instrument on which it is based could provide useful information about how consumer groups valued water service delivery and how they rated the water services that they were provided. The motivation for undertaking this study was that technical and cost considerations are inducing greater interest among South Africa’s municipal providers of water services to adjust the levels of water service offered to various groups. Such adjustments have consumer welfare implications and potential impacts on the demand for water services, and these implications and impacts need to be considered along with the technical and cost consequences.